Closed-end funds (CEFs) trade throughout the day on exchanges just like ETFs and represent baskets of stocks, bonds or other holdings. But the kicker here is that unlike ETFs — which feature a creation/redemption mechanism — closed-end funds issue a set number of shares when launched. The laws of supply and demand dictate what their value is. Essentially, this means you can buy $1 worth of stocks for, say, 95 cents or 90 cents. That discount already helps boost CEFs’ yields. CEFs also have the ability to use leverage to bolster distributions, which again makes them a great place to find high yield … and as an added bonus, many closed-end funds pay out their distributions on a monthly basis. If you’re looking to add some extra oomph and income for your portfolio, you need to consider CEFs. Here are three closed-end funds with high yield.
How would you like to get a nearly 7% dividend yield from common stocks? With CEFs you can, and the John Hancock Tax-Advantaged Dvd Incom Fd. (NYSE:HTD) is the perfect fund to score a high yield with. For investors looking for more from their corporate bond holdings, the BlackRock Corporate High Yield Fund Inc (NYSE:HYT) could be a great CEF choice. CEFs are a great way to get another source of high income- namely options. Writing covered calls or engaging in a buy-write strategy on staid dividend stocks can help boost income from those stocks further. But the hassles and skill to need to use options can be more than some investors can handle. The Voya Global Equity Div & Prm Oppty Fund (NYSE:IGD) does the work for you.
Source: InvestorPlace
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- 3 Higher-Quality, High-Yield Dividend Stocks
- 10 Stocks With Sustainable Dividend Growth
- 12 Dividend Growth Stocks With A Good Yield/Growth Mix
- Who is Ben Grossbaum and Why Should We Listen to Him?
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